Russia will provide more freedom for its Cryptocurrency trading under sanctions pressure.

In response to the economic challenges posed by international sanctions, the Central Bank of Russia has taken an innovative step. The bank plans to officially launch a service by the end of the year that allows transactions to bypass the obstacles caused by sanctions through international cryptocurrency payments.

According to Bloomberg, Russia is rapidly advancing the legislative process to legalize Cryptocurrency payments. The implementation of this strategy is to alleviate the increasingly severe challenges faced by Russian companies in international payments due to the sanctions imposed by the United States on the Ukraine war.

Through this new channel, Russian businesses will gain greater financial operational freedom while also opening up new possibilities for the global application of Cryptocurrency.

Progress in Russian Cryptocurrency Legislation

On Tuesday, members of the Russian State Duma conducted in-depth deliberations on the second and third readings of the Cryptocurrency Payment Bill. Anatoly Aksakov, Chairman of the Financial Market Committee, expects these drafts to be swiftly approved by the federal committee and are expected to be signed into effect by President Putin on September 1. Meanwhile, they will also discuss a bill aimed at regulating Cryptocurrency Mining activities.

Aksakov acknowledges that although there were concerns about the legalization of Cryptocurrency that could impact the domestic market, the potential of Cryptocurrency to bypass Western sanctions has been recognized as an undeniable phenomenon. The new legislation will regulate Cryptocurrency similar to foreign currencies, providing legal protection for related enterprises to reduce legal risks.

Analyst Ani Aslanyan emphasized the urgency of passing the bill, stating that its purpose is to facilitate cross-border transfers of digital assets. However, he also warned that the US may intensify monitoring of Russian services and companies, providing them with a game similar to catching RATS to evade sanctions.

It is reported that these new regulations may mainly benefit large exporters, while small and medium-sized enterprises may be excluded, forming a "closed club" mainly participated by large enterprises. In addition, as the mining of Cryptocurrency is mainly concentrated in the hands of large companies, this may also limit the popularity of transactions.

In addition, the Central Bank of Russia will serve as the primary regulatory agency for cryptocurrency, while the Federal Financial Monitoring Service, the Federal Tax Service, the Federal Security Service, and the Federal Property Management Agency will provide additional regulatory support. Aksakov believes that once the regulatory system is established, businesses will be able to engage in cryptocurrency transactions with greater confidence.

Positive Change in Attitude towards Cryptocurrency

Russia's legislative move seems to signal a shift in its stance on Digital Money. Faced with payment difficulties for domestic enterprises due to US sanctions, President Putin has pushed for regulation of Crypto to promote its use domestically and internationally. He also emphasized that Crypto is increasingly becoming a means of payment in international Settlements.

Despite initially proposing a ban on cryptocurrency due to concerns over financial stability, the Central Bank of Russia's subsequent change in attitude demonstrates openness to this emerging field. At the same time, the Central Bank of Russia now supports experimental use of cryptocurrency in cross-border transactions, indicating its willingness to explore blockchain innovative solutions.

First Deputy Governor of Russia Vladimir Chistyukhin has said that, when facing challenges in international payments, he advocates considering all possible solutions, including those issues that may not have been favored in the past.

Through this transformation, Russia is not only seeking to address the current economic difficulties, but also laying the foundation for the future development of the digital economy.

Conclusion:

Russia's legislative action this time reflects its innovation and adaptability in the field of financial technology. By promoting the legalization of Cryptocurrency, Russia has not only provided new solutions for its domestic enterprises in international trade, but also established its positive role in the global digital economy.

Believe that with the establishment of a regulatory framework, Russia is expected to achieve sustainable development in the field of Cryptocurrency, and contribute to the diversification and balanced development of the global economy.